Under a cloud of suspicion: Trust, distrust, and their interactive effect in interorganizational contracting

Strategic Management Journal

Volumn 33, Issue 7, 2012, Pages 820-833

  Connelly, Brian L ^a   Miller, Toyah ^b   Devers, Cynthia E ^c  

^a AUBURN UNIVERSITY   (United States)

^b INDIANA UNIVERSITY   (United States)

^c TULANE UNIVERSITY   (United States)

Author keywords

distrust; hierarchical linear modeling; IORs; policy capturing; trust

Indexed keywords

DISTRUST; HIERARCHICAL LINEAR MODELING; INTER-ORGANIZATIONAL RELATIONSHIPS; INTERACTIVE EFFECT; IORS; TRUST;

PLANNING;

MANAGEMENT;

EID: 84860888508     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.974     Document Type: Article

References (109)

1. Abrahamson E, Fombrun CJ,. 1994. Macrocultures: determinants and consequences. Academy of Management Review 19 (4): 728-755.
2. Aiman-Smith L, Scullen, SE, Barr, SH,. 2002. Conducting studies of decision making in organizational contexts: a tutorial for policy-capturing and other regression-based techniques. Organizational Research Methods 5 (4): 388-414.
3. Alchian AA, Woodward S,. 1988. The firm is dead; long live the firm: a review of Oliver E. Williamson's The Economic Institutions of Capitalism. Journal of Economic Literature 26: 65-79.
4. Anderson E, Jap SD,. 2005. The dark side of close relationships. Sloan Management Review 46 (3): 75-82.
5. Argyres NS, Bercovitz J, Mayer KJ,. 2007. Complementarity and evolution of contractual provisions: an empirical study of it services contracts. Organization Science 18 (1): 3-19.
6. Argyres NS, Mayer KJ,. 2007. Contract design as a firm capability: an integration of learning and transaction cost perspectives. Academy of Management Review 32: 1060-1077.
7. Atkinson S, Butcher D,. 2003. Trust in managerial relationships. Journal of Managerial Psychology 18 (4): 282-304.
8. Bachmann R,. 2001. Trust, power, and control in trans-organizational relations. Organization Studies 22: 337-365. (Pubitemid 33590946)
9. Barber B,. 1983. The Logic and Limits of Trust. Rutgers University Press: New Brunswick, NJ.
10. Bies RJ, Tripp TM,. 1996. Beyond distrust: 'getting even' and the need for revenge. In Trust in Organizations: Frontiers of Theory and Research, Kramer RM, Tyler TR, (eds). Sage: Thousand Oaks, CA; 246-260.
11. Bigley GA, Pearce JL,. 1998. Straining for shared meaning in organization science: problems of distrust and trust. Academy of Management Review 23: 405-421.
12. Bloom HS, Price HD,. 1975. Voter response to short-run economic conditions: the asymmetric effect of prosperity and recession. American Political Science Review 69 (4): 1240-1254.
13. Boyle R, Bonacich P,. 1970. The development of trust and mistrust in mixed-motive games. Sociometry 33: 123-139.
14. Carson SJ, Madhok A, Varman R, John G,. 2003. Information processing moderators of the effectiveness of trust-based governance in interfirm R&D collaboration. Organization Science 14: 45-56. (Pubitemid 36263852)
15. Carson, SJ, Madhok A, Wu T,. 2006. Uncertainty, opportunism, and governance: the effects of volatility and ambiguity on formal and relational contracting. Academy of Management Journal 49: 1058-1077. (Pubitemid 44787932)
16. Cashen LH, Geiger SW,. 2004. Statistical power and the testing of null hypotheses: a review of contemporary management research and recommendations for future studies. Organizational Research Methods 7 (2): 151-167. (Pubitemid 38597595)
17. Choi YR, Shepherd DA,. 2004. Entrepreneurs' decisions to exploit opportunities. Journal of Management 30 (3): 377-395. (Pubitemid 38457894)
18. Cook J, Wall T,. 1980. New work attitude measures of trust, organizational commitment, and personal need fulfillment. Journal of Occupational Psychology 53: 39-52.
19. Corts KS, Singh J,. 2004. The effect of repeated interaction on contract choice: evidence from offshore drilling. Journal of Law, Economics, & Organization 20: 230-260. (Pubitemid 39159603)
20. Das S, Sen PK, Sengupta S,. 1998. Impact of strategic alliances on firm valuation. Academy of Management Journal 41 (1): 27-41.
21. Das TK, Teng B-S,. 1998. Between trust and control: developing confidence in partner cooperation in alliances. Academy of Management Review 23: 491-512.
22. Deutsch M,. 1958. Trust and suspicion. Journal of Conflict Resolution 2: 265-279.
23. Devers CE, Wiseman RM, Holmes RM,. 2007. The effects of endowment and loss aversion in managerial stock option valuation. Academy of Management Journal 50 (1): 191-208.
24. Dirks KT, Ferrin DL,. 2001. The role of trust in organizational settings. Organization Science 12: 450-467.
25. Dirks KT, Skarlicki D,. 2004. Trust in leaders: existing research and emerging issues. In Trust and Distrust in Organizations: Dilemmas and Approaches, Kramer RM, Cook KS,. (eds). Sage: Thousand Oaks, CA; 21-40.
26. Dyer JH,. 1997. Effective interfirm collaboration: how firms minimize transaction costs and maximize transaction value. Strategic Management Journal 18 (7): 535-556. (Pubitemid 127467810)
27. Fein S,. 1996. Effects of suspicion on attributional thinking and the correspondence bias. Journal of Personality and Social Psychology 70: 1164-1184.
28. Fein S, Hilton JL,. 1994. Judging others in the shadow of suspicion. Motivation and Emotion 18: 167-198.
29. Fryxell GE, Dooley RS, Vryza M,. 2002. After the ink dries: the interaction of trust and control in U.S.-based international joint ventures. Journal of Management Studies 39 (6): 865-886.
30. Gabarro J,. 1978. The development of trust, influence, and expectations. In Interpersonal Behavior: Communication and Understanding in Relation, Athos AG, Gabarro JJ, (eds). Prentice Hall: Englewood Cliffs, NJ; 290-303.
31. Gambetta D,. 1988. Can we trust trust? In Trust: Making and Breaking Cooperative Relations, Gambetta D, (ed). Blackwell Publishers: Malden, MA; 213-237.
32. Gargiulo M, Ertug G,. 2006. The dark side of trust. In Handbook of Trust Research, Bachmann R, Zaheer A, (eds). Edward Elgar: Northampton, MA; 165-185.
33. Gilbert JA, Tang TL,. 1998. An examination of organizational trust antecedents. Public Personnel Management 27 (3): 321-338. (Pubitemid 128138971)
34. Glaeser EL, Laibson DI, Scheinkman JA, Soutter CL,. 2000. Measuring trust. Quarterly Journal of Economics 115 (3): 811-846.
35. Graham ME, Cable DM,. 2001. Consideration of the incomplete block design for policy-capturing research. Organizational Research Methods 4: 26-45. (Pubitemid 33674347)
36. Green PE, Srinivasan V,. 1990. Conjoint analysis in marketing: new developments with implications for research and practice. Journal of Marketing 54: 3-19.
37. Gulati R,. 1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal 38 (1): 85-112.
38. Gulati R, Nickerson J,. 2008. Interorganizational trust, governance choice, and exchange performance. Organization Science 19 (5): 688-708.
39. Hardin R,. 2002. Trust and Trustworthiness. Russell Sage Foundation: New York.
40. Hardin R,. 2004. Distrust: manifestations and management. In Distrust, Hardin R, (ed). Russell Sage Foundation: New York; 3-33.
41. Heretick DL,. 1981. Gender-specific relationships between trust-suspicion, locus of control, and psychological distress. Journal of Psychology 108 (2): 267-274.
42. Hitt MA, Ahlstrom D, Dacin MT, Levitas A, Svobodina L,. 2004. The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia. Organization Science 15 (2): 173-185. (Pubitemid 38640217)
43. Hitt MA, Dacin MT, Levitas E, Arregle JL, Borza A,. 2000. Partner selection in emerging and developed market contexts: resource-based and organizational learning perspectives. Academy of Management Journal 43: 449-467.
44. Hitt MA, Dacin TM, Tyler BB, Park D,. 1997. Understanding the differences in Korean and U.S. executives' strategic orientations. Strategic Management Journal 18 (2): 159-167. (Pubitemid 127467820)
45. Hitt MA, Gimeno J, Hoskisson RE,. 1998. Current and future research methods in strategic management. Organizational Research Methods 1: 6-44. (Pubitemid 128603576)
46. Hitt MA, Middlemist RD,. 1979. A methodology to develop the criteria and criteria weightings for assessing subunit effectiveness in organizations. Academy of Management Journal 22 (2): 356-374.
47. Hosmer LT,. 1995. Trust: the connecting link between organizational theory and philosophical ethics. Academy of Management Review 20 (2): 379-403.
48. Inkpen AC, Beamish PW,. 1997. Knowledge, bargaining power, and the instability of international joint ventures. Academy of Management Review 22 (1): 177-202.
49. Inkpen AC, Currall SC,. 2004. The coevolution of trust, control, and learning in joint ventures. Organization Science 15: 586-599. (Pubitemid 39453866)
50. Jap SD, Anderson E,. 2003. Safeguarding interorganizational performance and continuity under ex post opportunism. Management Science 49: 1684-1701.
51. Jeffries FL, Reed R,. 2000. Trust and adaptation in relational contracting. Academy of Management Review 25: 873-882.
52. Jones GR,. 2001. Towards a positive interpretation of transaction cost theory: the central roles of entrepreneurship and trust. In Handbook of Strategic Management, Hitt MA, Freeman RE, Harrison JS, (eds). Blackwell Publishers: Malden, MA; 208-229.
53. Jones GR, George JM,. 1998. The experience and evolution of trust: implications for cooperation and teamwork. Academy of Management Review 23: 531-546.
54. Kalnins A, Mayer KJ,. 2004. Relationships and hybrid contracts: an analysis of contract choice in information technology. Journal of Law, Economics, and Organization 20: 207-229. (Pubitemid 39159602)
55. Karren RJ, Barringer MW,. 2002. A review and analysis of the policy-capturing methodology in organizational research: guidelines for research and practice. Organizational Research Methods 5 (4): 337-361.
56. Kramer RM,. 1994. The sinister attribution error: paranoid cognition and collective distrust in organizations. Motivation and Emotion 18: 199-230.
57. Kramer RM,. 1999. Trust and distrust in organizations: emerging perspectives, enduring questions. Annual Review of Psychology 50: 569-598.
58. Langfield-Smith K, Smith D,. 2003. Management control systems and trust in outsourcing relationships. Management and Accounting Research 14 (3): 281-307. (Pubitemid 37123658)
59. Larson DW,. 2004. Distrust: prudent, if not always wise. In Distrust, Hardin R, (ed). Russell Sage Foundation: New York; 34-59.
60. Lee HJ,. 2004. The role of competence-based trust and organizational identification in continuous improvement. Journal of Managerial Psychology 19 (6): 623-639. (Pubitemid 39315952)
61. Levin DZ, Cross R,. 2004. The strength of weak ties you can trust: the mediating role of trust in effective knowledge transfer. Management Science 50 (11): 1477-1490.
62. Lewicki RJ, McAllister DJ, Bies RJ,. 1998. Trust and distrust: new relationships and realities. Academy of Management Review 23: 438-458.
63. Lewicki RJ, Tomlinson EC, Gillespie N,. 2006. Models of interpersonal trust development: theoretical approaches, empirical evidence, and future directions. Journal of Management 32 (6): 991-1022. (Pubitemid 44698027)
64. Louviere JJ,. 1988. Analyzing Decision Making: Metric Conjoint Analysis. Sage: Newbury Park, CA.
65. Luhmann N,. 1979. Trust and Power. Wiley: Chichester, UK.
66. Lui SS, Ngo H,. 2004. The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management 30: 471-485. (Pubitemid 38597384)
67. Luo Y,. 2002. Contract, cooperation, and performance in international joint ventures. Strategic Management Journal 23 (10): 903-919.
68. Madhok A,. 1995. Revisiting multinational firms' tolerance for joint ventures: a trust-based approach. Journal of International Business Studies 26: 117-137.
69. Mayer KJ, Argyres NS,. 2004. Learning to contract: evidence from the personal computer industry. Organization Science 15: 394-410.
70. Mayer KJ, Bercovitz J,. 2008. The influence of inertia on contract design: contingency planning in information technology service contracts. Managerial and Decision Economics 29 (2-3): 149-163.
71. Mayer KJ, Salomon RM,. 2006. Capabilities, contractual hazards, and governance: integrating resource-based and transaction cost perspectives. Academy of Management Journal 49 (5): 942-959. (Pubitemid 44787926)
72. McEvily B, Perrone V, Zaheer A,. 2003. Trust as an organizing principle. Organization Science 14: 91-103. (Pubitemid 36263856)
73. McKnight DH, Chervany NL,. 2001. Distrust and trust definitions: one bite at a time. In Trust in Cyber-Societies, Falcone R, Singh M, Tan YH, (eds). Springer-Verlag: Berlin, Germany; 27-54.
74. McKnight DH, Cummings LL, Chervany NL,. 1998. Initial trust formation in new organizational relationships. Academy of Management Review 23 (3): 473-490.
75. Mesquita LF,. 2007. Starting over when the bickering never ends: rebuilding aggregate trust among clustered firms through trust facilitators. Academy of Management Review 32: 72-91.
76. Neter J, Kutner MH, Nachtsheim CJ, Wasserman W,. 1996. Applied Linear Regression Models. Irwin Press: Boston, MA.
77. Ng K-Y, Chua RYJ,. 2006. Do I contribute more when I trust more? Differential effects of cognition- and affect-based trust. Management and Organization Review 2 (1): 43-66.
78. Nooteboom B,. 1996. Trust, opportunism, and governance: a process and control model. Organization Science 17: 985-1010.
79. Olson CA, Dell'Omo GG, Jarley P,. 1992. A comparison of interest arbitrator decision-making in experimental and field settings. Industrial and Labor Relations Review 45: 711-723.
80. Pablo AL,. 2007. Using policy capturing to understand strategic decisions: concepts and a mergers and acquisitions application. In Research Methodology in Strategy and Management, Ketchen DJ Jr, Bergh DD, (eds). Elsevier: Oxford, UK; 319-341.
81. Poppo L, Zenger T,. 2002. Do formal contracts and relational governance function as substitutes or complements? Strategic Management Journal 23 (8): 707-725.
82. Puranam P, Vanneste BS,. 2009. Trust and governance: untangling a tangled web. Academy of Management Review 34: 11-31.
83. Rempel JK, Holmes JG, Zhanna MP,. 1985. Trust in close relationships. Journal of Personality and Social Psychology 49 (1): 95-112.
84. Ring PS, Van de Ven AH,. 1992. Structuring cooperative relationships between organizations. Strategic Management Journal 13 (7): 483-498.
85. Rossi JS,. 1990. Statistical power of psychological research: what have we gained in 20 years? Journal of Consulting and Clinical Psychology 58: 646-656. (Pubitemid 20356009)
86. Schul Y, Mayo R, Burnstein E,. 2004. Encoding under trust and distrust: the spontaneous activation of incongruent cognitions. Journal of Personality and Social Psychology 86: 668-679. (Pubitemid 38628811)
87. Searle RH, Ball KS,. 2004. The development of trust and distrust in a merger. Journal of Managerial Psychology 19: 708-721.
88. Sedlmeier P, Gigerenzer G,. 1989. Do studies of statistical power have an effect on the power of studies? Psychological Bulletin 105: 309-316.
89. Seppanen R, Blomqvist K,. 2006. It is not all about trust: the role of distrust in inter-organizational relationships. In Network-Centric Collaboration and Supporting Frameworks, Camarinha-Matos L, Afsarmanesh H, Ollus M, (eds). Springer: Boston. MA; 181-188.
90. Shepherd DA,. 1999. Venture capitalists' assessment of new venture survival. Management Science 45: 621-632.
91. Sitkin SB, Roth NL,. 1993. Explaining the limited effectiveness of legalistic 'remedies' for trust/distrust. Organization Science 4: 367-392.
92. Sitkin SB, Stickel D,. 1995. The road to hell: the dynamics of distrust in an era of 'quality' management. In Trust in Organizations: Frontiers of Theory and Research, Kramer R, Tyler T, (eds). Sage: Thousand Oaks, CA; 196-215.
93. Slovic P,. 1993. Perceived risk, trust, and democracy. Risk Analysis 13 (6): 675-682. (Pubitemid 24012162)
94. Soda G, Usai A,. 1999. The dark side of dense networks: from embeddedness to indebtedness. In Interfirm Networks: Organization and Industrial Competitiveness, Grandori A, (ed). Routledge: London, UK; 276-302.
95. Spence JR, Keeping LM,. 2010. The impact of non-performance information on ratings of job performance: a policy-capturing approach. Journal of Organizational Behavior 31 (4): 587-608.
96. Ullmann-Margalit E,. 2004. Trust, distrust, and in between. In Distrust, Hardin R, (ed). Russell Sage Foundation: New York; 60-82.
97. Vandaele D, Rangarajan D, Gemmel P, Lievens A,. 2007. How to govern business services exchanges. International Journal of Management Reviews 9 (3): 237-258.
98. Venkatraman N,. 1989. The concept of fit in strategy research: toward verbal and statistical correspondence. Academy of Management Review 14 (3): 423-444.
99. Vlaar PWL, Van den Bosch FAJ, Voberda HW,. 2007. On the evolution of trust, distrust, and formal coordination and control in interorganizational relationships. Group and Organization Management 32 (4): 407-429.
100. Wathne K, Biong H, Heide JB,. 2001. Choice of supplier in embedded markets: relationship and marketing program effects. Journal of Marketing 65 (1): 54-67.
101. Weber CL, Rynes SL,. 1991. Effects of compensation strategy on job pay decisions. Academy of Management Journal 34 (1): 86-109.
102. Whipple JM, Frankel R,. 2000. Strategic alliance success factors. Journal of Supply Chain Management 36 (3): 21-28.
103. Wilkinson L, Blank G, Gruber C,. 1996. Desktop Data Analysis with SYSTAT. Prentice Hall: Upper Saddle River, NJ.
104. Williamson OE,. 1975. Markets and Hierarchies, Analysis, and Antitrust Implications: A Study in the Economics of Internal Organization. Free Press: New York.
105. Williamson OE,. 1991. Comparative economic organization: the analysis of discrete structural alternatives. Administrative Science Quarterly 36: 269-296.
106. Wiseman RM, Levin IP,. 1996. Comparing risky decision making under conditions of real and hypothetical consequences. Organizational Behavior and Human Decision Processes 66: 241-250. (Pubitemid 126175304)
107. Woolthuis RK, Hillebrand B, Nooteboom B,. 2005. Trust, contract and relationship development. Organization Studies 26 (6): 813-840. (Pubitemid 41787268)
108. Zaheer A, McEvily B, Perrone V,. 1998. Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science 9: 141-159.
109. Zhou J, Martocchio JJ,. 2001. Chinese and American managers' compensation award decisions: a comparative policy-capturing study. Personnel Psychology 54: 115-145.